Gulf Keystone Petroleum Regulatory News (GKP)

13 Dec 2007 07:00

Gulf Keystone Petroleum Ld13 December 2007 Not for release, publication or distribution in or into jurisdictions other than the United Kingdom and Bermuda where to do so would constitute a contravention of the relevant laws of such jurisdiction GULF KEYSTONE PETROLEUM LIMITED ("Gulf Keystone" or the "Company") OPERATIONAL UPDATE START OF DRILLING ON HASSI BA HAMMOU IMMINENT Gulf Keystone (AIM: GKP), an independent oil exploration company operating inAlgeria and Kurdish Region of Iraq, announces the following operational updatein respect of the Hassi Ba Hammou Perimeter ("HBH Permit") licence, which covers18,380 km2 in the Allal Dome of Central Algeria. Hassi Ba Hammou Gas Field - Appraisal Well and 3D seismic programme The HBH Permit contains the significant Hassi Ba Hamou gas field that wasdiscovered by SONATRACH in 1965 and confirmed by a third well, drilled bySONATRACH, HBH-3, in January 2005. The first well of a six well programme on the HBH Permit, HBH-4, will be anappraisal well on the Hassi Ba Hamou gas field, to evaluate the extent of thefield and continuity of the gas accumulation. It is anticipated that this wellwill spud during mid-December 2007 once commissioning and acceptance of the rigis completed. The 3D seismic programme which is being shot over the Hassi Ba Hamou gas fieldis 96% complete (512km2 of 533km2). It is currently estimated that the 3Dseismic programme, which began in July 2007, will be completed by the end of2007. HBH Permit - 2D seismic programme completed The HBH Permit wide 2D seismic programme targeting prospects and leads over thelicence was completed on the 4th December 2007 with 2047km of seismic havingbeen acquired to fulfil the 2000km commitment. The preliminary results arecurrently under evaluation. Early indications from the 2D seismic interpretation are that a number ofpromising leads have been identified over the HBH Permit, three of which thepartners have agreed to prioritise as drill targets. Six Well Drilling Programme The HBH-4 field appraisal well is the first well of the six well commitment onthe Hassi Ba Hamou Permit. Three appraisal and three exploration wells will bedrilled and tested back to back in the first exploration phase of the licencewhich expires in September 2008. Licensees of the HBH Permit are Gulf Keystone 38.25%, BG Group 36.75% andSonatrach 25%. Gulf Keystone farmed out 36.75% of the HBH Permit to BG Groupeffective September 2006. BG Group is operator. Todd Kozel, Chairman and Chief Executive Officer, commented: "The completion of the HBH Permit 2D seismic acquisition programme markssignificant progress for Gulf Keystone in the exploration of this licence.Early interpretation of both the 2D and 3D seismic data, over the Hassi Ba HamouPermit and the Hassi Ba Hamou gas discovery, has revealed a number of promisingleads and we are excited to be commencing drilling with the first of a six wellprogramme due to spud imminently." Enquiries: Gulf Keystone Petroleum +44 207 514 1400Todd KozelAli Al-Qabandi Citigate Dewe Rogerson +44 207 638 9571Media enquiries: Martin Jackson / George CazenoveAnalyst enquiries: Kate Delahunty Hoare Govett Limited +44 207 678 8000Andrew FosterStephen Bowler Tristone +44 207 355 5800Simon Ashby-Rudd This information is provided by RNS The company news service from the London Stock Exchange